Free tools

Free gift margin and threshold calculator

Free tool for Shopify stores

Planning a free gift with purchase? Move the sliders or type your numbers and watch the break even minimum spend update as you go. It runs in your browser and nothing you type is sent anywhere.

Total per order before shipping and tax, in your store currency.

Product cost plus any packing cost, per gift. Not the retail price.

Share of the selling price you keep after product cost.

Example numbers, replace them with yours.

Break even minimum spend

0.00

in your store currency

0% gift share

Where the order at that spend goes

  • Product cost
  • Gift
  • Margin left
Gift cost per order0.00
Extra spend to reach it0.00
Margin left after the gift0.00

How the numbers are worked out

The break even minimum spend is the spend at which the extra margin from a shopper stretching their basket covers the gift.

  • Break even threshold = average order value + (gift cost divided by margin).
  • Gift cost per order = the cost of one gift, paid on each order that reaches the threshold.
  • Gift as a share of the order = gift cost divided by the threshold.
  • Margin left after the gift = threshold times margin, minus gift cost.

This is a starting point, not a forecast. It assumes shoppers add items to reach the threshold and that your margin applies to the added items. Shipping, payment fees and discounts are not included unless you have already counted them in your margin. Shoppers who would have spent more than the threshold anyway still get the gift, so watch your results and adjust. The starting numbers above are only placeholders for you to change.

Tips for choosing a threshold

  • A threshold a little above your average order value gives shoppers a reachable goal, or higher if the gift costs a lot compared with your margin.
  • Pick a gift that is cheap for you and feels worthwhile to them.
  • Compare the gift cost with your margin on the added spend, not on the whole order.
  • Review the numbers after a few weeks and change the threshold if needed.

Setting up the gift in your store

Giftproof is a Shopify app that adds a free gift to the cart when a shopper reaches your minimum spend, and removes it if they drop below. Giftproof is coming soon.

Built by Taskivator. This calculator gives estimates for planning only.